OpenAI Says China Competitor DeepSeek Used ChatGPT Data To Train Its Rival AI Model

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ChatGPT creator OpenAI alleged that Chinese AI rival DeepSeek used its proprietary models to train its own open-source rival.

The San Francisco-based firm said that it has found evidence of “distillation,” which it suspects comes from DeepSeek, the Financial Times reported.

OpenAI

Investigation Launched For Potential DeepSeek IP Breach Amid Growing Evidence

US President Donald Trump’s AI and crypto czar David Sacks said yesterday that there is “substantial evidence” that DeepSeek relied on the output of OpenAI’s models to develop its own competing technology. In an interview with Fox News, he said that it looks like the Chinese firm used ChatGPT’s output to train its model.

People familiar with the matter also said that Microsoft, one of OpenAI’s biggest investors, has launched an investigation into the potential IP breach, Bloomberg reported. In the fall, researchers at Microsoft  noticed that individuals believed to be linked to DeepSeek were exfiltrating a large amount of the company’s data using OpenAI’s application programming interface (API), Bloomberg said.

Software developers are able to pay for a license to use OpenAI’s API. However, it is suspected that the large data pull observed by the researchers went against the company’s terms of services.

DeepSeek Release Hammers Nvidia Stock

DeepSeek released its open-source ChatGPT competitor called R1 earlier this month. The model is able to mimic the way humans reason, and caused an uproar in the AI market that has been dominated by OpenAI and US rivals including Meta and Google.

 

DeepSeek boasted that its R1 model outperformed ChatGPT in various benchmarks, and also came in at a fraction of the cost of OpenAI’s models. This is mainly due to the fact that DeepSeek was able to train and run its own model on much cheaper computer chips.

Nvidia, the leading AI chip manufacturer, saw its market value plummet by almost $600 billion on Monday, the biggest single-day loss in stock market history.

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